Draft Law amending and supplementing a number of articles of the Law on Prices: Improving the capacity of grassroots level organizations in price stabilization

The draft Law amending and supplementing a number of articles of the Law on Prices transfers the responsibility for implementing price stabilization from the district-level People's Committee (as assigned by the provincial-level People's Committee) to the commune-level People's Committee. Approving the enhancement of decentralization and delegation of authority in implementing price stabilization, however, the opinions of the National Assembly Standing Committee noted that it must go hand in hand with improving the capacity of grassroots level implementation to ensure feasibility.

Need for price management linkage mechanism between commune and provincial levels

Commenting on the draft Law amending and supplementing a number of articles of the Law on Prices, the National Assembly Standing Committee highly appreciated the drafting agency and the agency in charge of reviewing the draft Law for completing the dossier, orienting appropriate amendments to handle the price management mechanism according to a regulated market economy , State management and meeting the requirements of decentralization and delegation of power; enhancing transparency, ensuring flexibility in price management.

Vice Chairman of the National Assembly Vu Hong Thanh speaks. Photo: Ho Long

The draft amended Law stipulates the transfer of responsibility for implementing price stabilization from the district-level People's Committee (as assigned by the provincial-level People's Committee) to the commune-level People's Committee. The National Assembly Standing Committee supports the strengthening of decentralization and delegation of authority in implementing price stabilization, but notes that it must go hand in hand with improving the capacity of grassroots organizations to ensure feasibility.

Permanent Vice Chairwoman of the People's Aspirations and Supervision Committee Le Thi Nga observed that the draft amended Law in the direction of transferring price stabilization authority from the district level to the commune level is consistent with the current operation of the two-level local government model. However, in the implementation process, the Government needs to improve the material and human resources as well as related conditions, ensuring the feasibility of transferring from the district level to the commune level.

Permanent Deputy Head of the People's Aspirations and Supervision Committee Le Thi Nga speaks. Photo: Ho Long

According to Chairman of the Delegation Work Committee Nguyen Thanh Hai, the transfer of authority as in the draft Law is appropriate, however, according to the report of the Ministry of Home Affairs in 2024, on average each commune currently has only about 0.6 full-time financial and accounting officers.

“The assignment of additional tasks to stabilize capital prices requires professionalism and often involves a large area, which can lead to overload and lack of professionalism at the grassroots level, directly affecting people's lives.” Raising this issue, the Chairman of the Delegation Work Committee said that, to avoid overload at the grassroots level, the drafting agency needs to study regulations and mechanisms for authorizing or linking price management between the commune and provincial levels; and supplement specific guidance on the responsibility of coordination between relevant departments, branches and commune-level authorities in organizing price stabilization.

Chairman of the Delegation Work Committee Nguyen Thanh Hai speaks. Photo: Ho Long

Regarding the management of valuation services, in Clause 7, Article 1 of the draft Law, it is proposed to remove two investment and business conditions that are no longer suitable in Articles 48 and 49 of the current Law, specifically reducing administrative procedures and shortening valuation time.

According to the Ministry of Finance, the total number of valuation records has increased by 14%, but 20% of valuation enterprises are still being handled for violations due to professional errors or unqualified practice. According to Chairman of the Committee Nguyen Thanh Hai, this situation poses an urgent need to both tighten and simplify the price management process. Therefore, to ensure transparency in the valuation process, it is necessary to supplement the mechanism to control the professional capacity of capital contributing organizations, avoiding the situation of legalizing enterprises that borrow the name of the valuation profession.

Be cautious when assigning local pricing for natural gas transportation services

The draft Law adds infrastructure services for industrial parks, economic zones, concentrated digital technology zones, high-tech zones and industrial clusters invested from the State budget to the List of goods and services priced by the State and the pricing authority is determined by the People's Committee at the provincial level.

Expressing agreement with a number of goods that have been added to the list of goods and services priced by the State, Vice Chairman of the National Assembly Vu Hong Thanh noted that it is necessary to review to ensure that only necessary goods are added and must be suitable to the development conditions of each sector. There are goods that initially require the role of the State, but when the market develops and competition is expanded, infrastructure is improved and costs are more transparent, then a flexible mechanism is needed to allow a gradual shift to reference prices or businesses to set their own prices within the price range prescribed by the State. If this list is "rigidly" regulated without a roadmap for adjustment, it can create barriers to the operation of the market mechanism and limit innovation in related industries.

Chairman of the Council of Nationalities Lam Van Man speaks. Photo: Ho Long

Also interested in this content, Chairman of the Ethnic Council Lam Van Man suggested that large-scale development areas such as infrastructure services in industrial parks and high-tech zones will be specifically priced by the Provincial Committee; infrastructure services in industrial parks, economic zones, concentrated digital technology zones, high-tech zones and industrial clusters invested from the state budget will be priced by the State.

At the same time, services in the field of education - training, vocational education are ordered and implemented according to the provisions of law on higher education, vocational education. The service of collecting, transporting, and treating domestic solid waste is priced by the Provincial People's Committee with a maximum price and specific price for the investor of the waste collection and treatment facility.

The Chairman of the Nationalities Council also proposed to supplement regulations on decentralization of pricing for ministries, branches, and localities, especially in the fields of health, education, and industrial infrastructure. Accordingly, the regulations are in the direction of the Ministry of Health determining specific prices or decentralizing to the units under the Ministry to determine specific prices applicable at the units under the Ministry; the Provincial People's Committee determines the maximum price applicable to investors, facilities for collection, transportation, and treatment of domestic solid waste.

Regarding the assignment of the authority to set prices for natural gas (LNG) transportation services from the Ministry of Industry and Trade to the provincial People's Committees to set specific prices, Vice Chairman of the National Assembly Vu Hong Thanh said that this is a very specific field, requiring complex technical cost analysis. Therefore, the feasibility of assigning pricing to localities should be carefully considered.

Minister of Finance Nguyen Van Thang explains at the meeting. Photo: Ho Long

Explaining at the meeting, Minister of Finance Nguyen Van Thang said that regarding the list and authority of state pricing for natural gas transportation services and national reserves, the Ministry will continue to research and initially classify cases for transportation through one locality and from two or more localities to find appropriate solutions. At the same time, the list of services will be reviewed to ensure consistency and compliance with the Law on Enterprises and the Law on Civil Aviation of Vietnam.

Regarding the opinions of the National Assembly Standing Committee on the assignment of price stabilization authority, Minister Nguyen Van Thang said that currently, each province after the merger has a very large area. If the implementation is assigned to the provincial level, it will be very difficult to implement and the response will be slow, making it difficult to ensure timely price stabilization when there are fluctuations. Therefore, "the commune level is still the most practical place". However, the Minister expressed his agreement with the opinion of the National Assembly Standing Committee on the need to improve capacity, train financial and accounting staff, and facilities at the commune level, considering this an important condition to ensure effectiveness in implementation.

Source: https://daibieunhandan.vn/du-thao-luat-sua-doi-bo-sung-mot-so-dieu-cua-luat-gia-nang-cao-nang-luc-to-chuc-thuc-dien-cua-cap-co-so-trong-binh-on-gia-10389712.html